The economy has been tough lately, and more and more people are increasingly opting for alternative finance such as equity release to enhance their retirement finances. This should help them maintain the lifestyle that they are used to. Annuities are not the only financial product whereby your health can influence the value of the investment you can make. With enhanced lifetime mortgage schemes, lenders can now request your medical records to ascertain the severity of your medical condition and therefore the maximum equity release lump sum you can obtain.
Conditions such as heart attack, blood pressure, cancer, angina, stroke and even if you are on mediation can all affect the size of the equity release. For those who are unsure whether they qualify should contact their independent equity release adviser who can refer your case to the three enhanced lifetime mortgage companies. These are currently Aviva, more2life and Partnership and surely this list will continue to grow as more equity release lenders become aware of the market potential.
What many retirees as well as those who are approaching the end of their working life are doing is the release of equity from their homes, which ideally allows the value in their property to work for them. You will find various equity release schemes available in the market and it is important that you understand how each one of them works, which must include the equity release pros and cons of each. You also need to know if you actually qualify and how much you qualify for depending on your medical condition and other circumstances.
The first criteria is age. You must be at least 55 years old or if you are applying as a couple, then both of you must be over 55 years old. Additionally, you must be a resident of the UK or Northern Ireland and your property must be worth at least £60,000. You also need to understand your property type, since most providers will not offer equity release on high rise flats, freehold flats and mobile homes. Other factors come into play depending upon the type of scheme. The minimum age for most plans is 55 however, if you want to take a home reversion plan, you must be aged 65.
As mentioned earlier, the way you live your life and overall health are a major contributing factor that comes into play. The best way to know if you qualify and how much you qualify for, is to speak to a specialist, and have a detailed financial planning report of what you want to achieve. The expert will highlight the advantages & disadvantages and your overall health to determine the best option. If you are looking to improve the quality of your standard of living in retirement, an equity release plan would be a great idea.